Flowserve
Market Cap
US$6.0b
Last Updated
2020/02/19 00:01 UTC
Data Sources
Company Financials +
Executive Summary
Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with proven track record.
Similar Companies
Share Price & News
How has Flowserve's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FLS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-4.7%
FLS
-1.6%
US Machinery
0.06%
US Market
1 Year Return
-3.7%
FLS
10.0%
US Machinery
19.4%
US Market
Return vs Industry: FLS underperformed the US Machinery industry which returned 10% over the past year.
Return vs Market: FLS underperformed the US Market which returned 19.4% over the past year.
Shareholder returns
| FLS | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.7% | -1.6% | 0.06% |
| 30 Day | -8.9% | -2.6% | 1.1% |
| 90 Day | -5.1% | 2.2% | 8.9% |
| 1 Year | -2.2%-3.7% | 12.0%10.0% | 21.9%19.4% |
| 3 Year | -0.6%-5.5% | 36.7%28.1% | 48.9%39.3% |
| 5 Year | -20.6%-26.9% | 61.6%42.6% | 71.9%53.1% |
Price Volatility Vs. Market
How volatile is Flowserve's share price compared to the market and industry in the last 5 years?
Simply Wall St News
10 hours ago | Simply Wall St
Here's What Analysts Are Forecasting For Flowserve Corporation After Its Annual Results1 week ago | Simply Wall St
Investors Who Bought Flowserve (NYSE:FLS) Shares Five Years Ago Are Now Down 21%3 weeks ago | Simply Wall St
Here's Why Flowserve (NYSE:FLS) Can Manage Its Debt ResponsiblyValuation
Is Flowserve undervalued compared to its fair value and its price relative to the market?
9.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FLS ($45.98) is trading below our estimate of fair value ($50.75)
Significantly Below Fair Value: FLS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FLS is poor value based on its PE Ratio (23.7x) compared to the Machinery industry average (21.4x).
PE vs Market: FLS is poor value based on its PE Ratio (23.7x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: FLS is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: FLS is overvalued based on its PB Ratio (3.4x) compared to the US Machinery industry average (2.2x).
Next Steps
Future Growth
How is Flowserve forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
17.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FLS's forecast earnings growth (17.5% per year) is above the savings rate (1.7%).
Earnings vs Market: FLS's earnings (17.5% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: FLS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FLS's revenue (3.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: FLS's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FLS's Return on Equity is forecast to be low in 3 years time (15%).
Next Steps
Past Performance
How has Flowserve performed over the past 5 years?
-29.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FLS has high quality earnings.
Growing Profit Margin: FLS's current net profit margins (6.4%) are higher than last year (3.1%).
Past Earnings Growth Analysis
Earnings Trend: FLS's earnings have declined by -29.3% per year over the past 5 years.
Accelerating Growth: FLS's earnings growth over the past year (112%) exceeds its 5-year average (-29.3% per year).
Earnings vs Industry: FLS earnings growth over the past year (112%) exceeded the Machinery industry 1.5%.
Return on Equity
High ROE: FLS's Return on Equity (14.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Flowserve's financial position?
Financial Position Analysis
Short Term Liabilities: FLS's short term assets ($2.5B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: FLS's short term assets ($2.5B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: FLS's debt to equity ratio (75.8%) is considered high.
Reducing Debt: FLS's debt to equity ratio has increased from 59.8% to 75.8% over the past 5 years.
Debt Coverage: FLS's debt is well covered by operating cash flow (22.7%).
Interest Coverage: FLS's interest payments on its debt are well covered by EBIT (8.5x coverage).
Balance Sheet
Inventory Level: FLS has a high level of physical assets or inventory.
Debt Coverage by Assets: FLS's debt is covered by short term assets (assets are 1.8x debt).
Next Steps
Dividend
What is Flowserve's current dividend yield, its reliability and sustainability?
1.65%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: FLS's dividend (1.65%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: FLS's dividend (1.65%) is low compared to the top 25% of dividend payers in the US market (3.7%).
Stability and Growth of Payments
Stable Dividend: FLS's dividends per share have been stable in the past 10 years.
Growing Dividend: FLS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (39.2%), FLS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FLS's dividends in 3 years are forecast to be well covered by earnings (25.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Robert Rowe (48yo)
2.8yrs
Tenure
US$8,702,469
Compensation
Mr. Robert Scott Rowe has been Chief Executive Officer and President of Flowserve Corporation since April 1, 2017. Mr. Rowe served as the President of Cameron International Corporation since October 1, 201 ...
CEO Compensation Analysis
Compensation vs Market: Robert's total compensation ($USD8.70M) is above average for companies of similar size in the US market ($USD6.27M).
Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.8yrs | US$8.70m | 0.048% $2.9m | |
| Senior VP & Chief Sales Officer | 3.3yrs | US$2.10m | 0.032% $1.9m | |
| Senior VP & Chief Human Resources Officer | 1.8yrs | US$1.67m | 0.0020% $119.2k | |
| President of Pumps Division | 1.6yrs | US$2.08m | 0.0016% $96.3k | |
| Interim CFO | 0.2yrs | US$930.59k | 0.013% $753.6k | |
| Vice President of Marketing & Technology | 1yrs | no data | no data | |
| Chief Ethics & Compliance Officer & VP | 4.8yrs | no data | no data | |
| Senior VP | 1.7yrs | no data | 0.00094% $56.6k | |
| Vice President of Corporate & Marketing Communications | 6.3yrs | no data | no data | |
| President of Flow Control Division | 4.4yrs | no data | 0.028% $1.7m |
2.3yrs
Average Tenure
50.5yo
Average Age
Experienced Management: FLS's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.8yrs | US$8.70m | 0.048% $2.9m | |
| Independent Director | 12.8yrs | US$239.99k | no data | |
| Independent Director | 1.3yrs | US$25.00k | no data | |
| Non-Executive Chairman | 2.8yrs | US$349.99k | 0.011% $675.3k | |
| Independent Director | 12.1yrs | US$262.99k | 0.0020% $118.0k | |
| Independent Director | 12.5yrs | US$234.99k | 0.0061% $369.6k | |
| Independent Director | 12.5yrs | US$224.99k | no data | |
| Independent Director | 8.3yrs | US$239.99k | no data | |
| Independent Director | 2.8yrs | US$239.99k | 0.0020% $118.6k | |
| Independent Director | 1.3yrs | US$25.00k | no data |
5.5yrs
Average Tenure
58.5yo
Average Age
Experienced Board: FLS's board of directors are considered experienced (5.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FLS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Flowserve Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Flowserve Corporation
- Ticker: FLS
- Exchange: NYSE
- Founded: 1912
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$6.019b
- Shares outstanding: 130.90m
- Website: https://www.flowserve.com
Number of Employees
Location
- Flowserve Corporation
- 5215 North O'Connor Boulevard
- Suite 2300
- Irving
- Texas
- 75039
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FLS | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1980 |
| FWV | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1980 |
| 0IQE | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1980 |
| FLS * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1980 |
| F1LS34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. The company operates through three segments: Engineered Product Division (EPD), Industrial Product Division (IPD), and Flow Control Division (FCD). The EPD segment offers custom and other engineered pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines. The IPD segment provides engineered and pre-configured industrial pumps and pump systems; and aftermarket services, including product installation and commissioning services, seal systems spare parts, repairs, re-rate and upgrade solutions, and advanced diagnostics and maintenance solutions. The FCD segment offers industrial valve and automation solutions, including isolation and control valves, actuation, controls, and related equipment. This segment’s products are used to control, direct, and manage the flow of liquids and gases. It primarily serves oil and gas, chemical and pharmaceuticals, power generation, and water management markets, as well as general industries, including mining and ore processing, pulp and paper, food and beverage, and other smaller applications. The company distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was incorporated in 1912 and is headquartered in Irving, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 00:01 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.